A Guide on Sub-broker Terminal

A Brief Overview of Sub-broker Terminal

Sub-brokers bridge the gap between clients and stockbrokers by establishing a link between them. By acting as an agent of the broker, they offer services like finding new clients and managing existing ones. Sub-brokers get a percentage of charges and fees collected by the stockbroker offering these duties.

An efficient sub-broker terminal will serve as your all-in-one dashboard. It will come with features to deal with data. Additionally, it will help in understanding performance and lead generation with ease.

The best sub-broker terminal will be user-friendly with multiple features. The easy-to-use sub-broker platform will enable an understanding of different sales funnel levels for getting clients. If these terminals have data represented in bar charts, it will be more interactive for users.

Understanding the Concept of an Authorised Person Terminal

While talking about stockbrokers and sub-brokers, you will come across another type of broking house model. It is referred to as an authorised person, an individual appointed by a stockbroker to access the trading terminal.

On an authorised person terminal, you will have access to the tools and technology of the brokerage house to enhance performance and responsibility. This kind of terminal will allow you to access authorised trade securities in more than one segment.

If you work on an authorised person terminal, you will be able to do it from any corner. All you will need is a secure and strong phone connection with authorised permission from the broker-dealer.

Difference Between Sub Broker Terminal and Authorised Person Terminal

Have you ever tried to compare a sub-broker and an authorised person terminal? Well, the difference is primarily evident in the roles you can fulfil on the terminals.

On a sub-broker terminal, you will be able to assist stockbrokers by working on their behalf. Moreover, you will be able to assist investors in purchasing, selling, or dealing in securities through board members. A sub-broker often works on behalf of a stockbroker and charges a cut of the brokerage for referred clients.

An authorised person is always appointed by a stockbroker. You will be able to access an authorised person terminal by serving as the agent of a stockbroker.

If you want to use a sub-broker terminal, you will have to register with the exchange as well as SEBI. But if you use an authorised person terminal, you are fine as long as you have registered with the exchange.

A new category was introduced in 2018, with every authorised person terminal getting unified under SEBI. Anyone imitating an agent for a client without a proper agreement should register with SEBI or discontinue their business.

SEBI Circular on Authorised Persons

Stock exchanges aren’t allowed to offer new registrations for the role of a sub-broker, and pending applications need to be returned. Q 1One circular was also announced with details about postponing the migration of one authorisation status to another. The initial due date for withdrawal or migration was announced as 31 December 2017. But it became difficult for SEBI to complete the issuance of new certificates in such a timely manner.

Sub-brokers need to meet the capitalisation criteria for becoming a trading member in their registered stock exchange. Otherwise, they need to submit their application to become eligible to use an authorised person terminal.

Features and Advantages of a Sub-broker Terminal

Some key properties to expect from a sub-broker terminal include:

Performance Overview Dashboard

It should offer a distinctive view of total weekly, monthly, quarterly, and yearly earnings. The dashboard in a good sub-broker terminal will have an alerts section. This will help in comparing the performance of the current month with that of the past month. The comparison can be made according to metrics like referral revenue, lead generation, and own revenue.

Lead Status

This section in your sub-broker terminal will offer comprehensive details about the total number of leads, their status, and the number of accounts opened. This particular segment can be further classified on the basis of the source of the lead. While leads can come directly, they also get generated from the clients and partners of sub-brokers.

TDS Certificate

If your terminal has this feature, you will be able to download TDS certificates for a particular quarter. Therefore, dealing with anything related to income taxes will become more convenient.

Incentives and Schemes

Any sub-broker terminal with this feature will be truly unique. Every broker does not offer extra incentives on top of the brokerage sharing. Any broker offering this feature on their terminal will provide detailed information about incentives. Moreover, it should come with a detailed outline of the incentive policies and referral structures.

API Request

This function is quite useful for generating an API link to capture leads on your website. The process of using the link once the request gets approved includes:

• Collect the link from your terminal.

• Embed it within the lead form of your website.

• When a website visitor fills up the form, the details will show up on the terminal.

• After the lead is on the terminal, you will be able to track its status with ease.

Wrapping up

If you plan on becoming a sub-broker, you should have access to a legitimate terminal to fulfill the requirements. The right sub-broker terminal will come with useful features like an interactive dashboard and the property to generate a TDS certificate for greater convenience. But before starting to use this type of terminal, learn about the authorised person’s business structure in the stock market.